NATIONAL CONFERENCE OF INSURANCE GUARANTY FUNDS

2002 SUMMARY OF PROPERTY AND CASUALTY INSURANCE GUARANTY ASSOCIATION ACTS

OF THE VARIOUS STATES & U.S.TERRITORIES

NEW MEXICO (NEW MEXICO INSURANCE GUARANTY ASSOCIATION)
ASSESSMENT
CITATION &
EFFECTIVE DATE / MODEL OR
SIMILAR ACT / COVERED CLAIMS / SEPARATE
ACCOUNTS / MAXIMUM
ANNUAL % / RECOUPMENT
PROVISION / BASE
YEAR
N.M. Stat. Ann. 59A-43-1 et seq. (1978); 4/4/73. / Yes / COVERED LINES OF BUSINESS
All kinds of direct insurance, except life, health, annuities, title, guaranty, surety (other than fidelity), credit, mortgage guaranty, ocean marine and surplus lines, nor does this act apply to motor club coverages or services, nor to any coverage issued by any person not organized under laws providing expressly for formation of insurers nor engaged in business as such an insurer. Coverage includes worker's compensation.
UNEARNED PREMIUM is covered up to $100,000 with a $25 deductible.
COVERED CLAIM is an unpaid claim of an insured or liability claimant under a covered policy issued by an insolvent insurer, and the liability claimant or insured is a resident of the state at the time of the insured event, or the property from which the claim arises is permanently located in the state. Association is obligated to the extent of covered claims existing prior to the determination of insolvency, and arising within 30 days thereafter. / 1. Workers'
Compensation
2. Auto
3. All other / 2% per account. / Rates and premiums. / Year preceding year of assessment.
LIMITS ON CLAIMS
DEDUCTIBLE
PER CLAIM / MAXIMUM
PER CLAIM / NET WORTH
PROVISION / OTHER / TERMINATION
PROVISION / MISCELLANEOUS
$25 / $100,000 also same limit applies per claimant per occurrence with no limit for worker's compensation claims. / None / NONCOVERED CLAIMS
Amounts due any reinsurer, insurer, insurance pool, or underwriting association, as subrogation recoveries or otherwise.
Covered claim shall not include any amount of an unpaid claim paid to an insured or liability claimant of an insolvent insurer by any person, including but not limited to an agent or broker whether or not an assignment is taken by such person, agent or broker. Covered claim shall not include supplementary payment obligations, including but not limited to adjustment fees and expenses, attorneys' fees and expenses, court costs, interest and bond premiums incurred prior to the determination that an insurer is an insolvent insurer.
CLAIMS COVERED BY OTHER INSURANCE AND OTHER GUARANTY ASSOCIATIONS Any person having a claim against an insurer under any provision in an insurance policy including but not limited to uninsured motorist coverage other than a policy of an insolvent insurer, which is also a covered claim, shall be required to exhaust first his rights under any such policy. An insured of an insolvent insurer possessing no other applicable insurance coverage shall be deemed to be "uninsured" for uninsured motorist coverage purposes. Any amount payable on a covered claim shall be reduced by the amount of any recovery under such insurance policy. Any person having a claim which may be covered by more than one guaranty association shall seek recovery first from the association of the place of residence of the insured, except that if it is a first party claim for damage to property with a permanent location, he shall seek recovery first from the association of the location of the property, and if it is a worker's compensation claim then he shall first seek recovery first from the association of the residence of the claimant. Any recovery made from this association shall be reduced by the amount of the recovery from any other association. / Yes / Insolvent insurer defined as licensed insurer against which a final order of liquidation with a finding of insolvency has been entered by a court of competent jurisdiction.
Expenses of the association in handling claims and payments for covered claims shall be accorded the priority as set out in the liquidation act. (The liquidation act currently affords unallocated loss adjustment expenses the same priority as the liquidator's expenses and other fund claims class 3 treatment.)
No cause of action shall arise against any member insurer, the association its board of directors or agents, or the commissioner or his representatives for any action taken pursuant to this chapter.
All proceedings against an insolvent insurer or any party to be defended by an insolvent insurer shall be stayed for up to 6 months from the date insolvency is determined or such additional time as may be determined by a court.
Current through July 31, 2002.